Cheyenne Mountain Entertainment in Chapter 11

Cheyenne Mountain Entertainment has filed for Chapter 11 bankruptcy
protection in the latest twist in the ongoing saga surrounding development of
Stargate Worlds, the planned MMORPG based on the Stargate property. This comes in spite of
the recent release of Stargate
Resistance, a third-person shooter it was hoped would infuse the company
with enough cash to properly complete the project. This is according to
Massively, where they have word that this chapter in the story goes deeper
than that, saying: "Now, news has come to light that not only has Cheyenne Mountain Entertainment
filed for Chapter 11 Bankruptcy protection, but they've also severed
all ties with Gary Whiting -- former Chairman and CEO of CME. Add to that,
the shareholders and Cheyenne Mountain have joined forces against Whiting in civil
case (CV2010-003106) filed in Maricopa County, naming many other ventures
including the curious
'interactive social network,' MMOGuls Inc. as co-defendants, in a civil
complaint 'alleging various wrong doing against the Company'."

There's an
Official FireSky Statement from the game's development team on the forums
discussing the situation, saying: "That said, our entire staff is in-house
working on upgrades and expansions for Stargate Resistance, and we continue to
be motivated and excited by the response we’ve received from our customers." The
full statement follows.

Hi guys, in light of recent events this is
the official statement from FireSky:

Cheyenne Mountain’s corporate structure has undergone some dramatic changes in
the last few weeks, and that has resulted in various actions such as the filing
for Chapter 11. Certain parties believed that was the right thing to do, other
parties do not and this is still being evaluated and may be rescinded. Even if
the bankruptcy should go through, however, Chapter 11 simply allows a company to
restructure its debt to a manageable plan approved by the courts. It does not
absolve a company of debt, and it does not shut it down or otherwise affect its
daily operations.

This will all be sorted out in the legal and proper manner, and all of us on the
development side of things hope it’s done as quickly as possible.

That said, our entire staff is in-house working on upgrades and expansions for
Stargate Resistance, and we continue to be motivated and excited by the response
we’ve received from our customers.